SME Times News Bureau | 23 Aug, 2021
Union Minister for
Finance Nirmala Sitharaman, on Monday launched the asset monetisation pipeline
of Central ministries and public sector entities: ‘National Monetisation
Pipeline (NMP Volumes 1 & 2)’.
The pipeline has
been developed by NITI Aayog, in consultation with infrastructure line
ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget
2021-22. NMP estimates aggregate monetisation potential of Rs 6.0 lakh crores
through core assets of the Central Government, over a four-year period, from FY
2022 to FY 2025.
Volumes 1 and 2 of
the report on NMP was released today in the presence of Vice Chairman (NITI
Aayog), CEO (NITI Aayog), and Secretaries of infrastructure line ministries
included under the pipeline—Roads, Transport and Highways, Railways, Power,
Pipeline and Natural Gas, Civil Aviation, Shipping Ports and Waterways,
Telecommunications, Food and Public Distribution, Mining, Coal and Housing and
Urban Affairs—along with Secretary (Department of Economic Affairs) and
Secretary (Department of Investment and Public Asset Management).
Union Minister of
Finance, while launching the pipeline, said, “Asset monetisation, based on the
philosophy of Creation through Monetisation, is aimed at tapping private sector
investment for new infrastructure creation. This is necessary for creating
employment opportunities, thereby enabling high economic growth and seamlessly
integrating the rural and semi-urban areas for overall public welfare.”
enumerated the reforms and initiatives undertaken by the current Government
towards accelerated infrastructure development and for incentivizing private
This included the
recent ‘Scheme of Financial Assistance to States for Capital Expenditure’,
which incentivizes State Governments to recycle State Government-owned asset
for fast-tracking greenfield infrastructure.
objective of the programme is to unlock the value of investments in brownfield
public sector assets by tapping institutional and long-term patient capital,
which can thereafter be leveraged for further public investments,” Vice
Chairman, NITI Aayog, said during the launch.
He emphasized on
the modality of such unlocking, which is envisaged to be by way of structured
contractual partnership as against privatization or slump sale of assets.